Companies lag on business model reporting

Mentions of “business models” in financial reports are “inconsistent, incomparable, and incomplete” because of a lack of consistent guidance, according to a report by the International Federation of Accountants, CIMA and PwC.

Investors and other stakeholders want to know what makes companies tick and need clearer information on business models – a description of how a company makes money, including its capital, business activities, products and services.

The research was done at the request of the International Integrated Reporting Council (IIRC), which is due to publish guidance on “integrated” financial reporting later in April.

The IIRC defines integrated reporting as...

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